SMS Marketing for Restaurants: Cooking Up Consistent Revenue

It’s an interesting time to be in the restaurant business.

According to the National Restaurant Association:

• Industry sales in 2024 are projected to surpass 1 trillion dollars for the first time in history. 
• The restaurant industry is expected to add 1.2 million jobs over the next eight years. 
• Nearly half of all restaurants are now at least 50% women-owned.

That said, this same research shows 45% of owners expect competition from other restaurants to intensify. 

Almost half are still managing debt taken on during the pandemic.

And nearly a third cite staff recruiting and training as their most significant near-term challenges. 

This all puts owners in a bit of a pickle. 

Internal operations will need to be prioritized. But that can't be done at the cost of engaging with customers and building loyalty. So, for those who haven't already adopted it, it's time to fully embrace the benefits of SMS (text) marketing for restaurants. 

Wondering why? And how? 

No worries, we've got you covered. 

Why should restaurant owners use SMS marketing?

In short, SMS marketing is one of the most effective marketing channels in the restaurant business for increasing order volume and overall revenue. And for good reason.

SMS marketing isn’t just direct; it’s immediate. Most texts are read within minutes of delivery, making it an ideal channel for time-sensitive promotions and updates related to menus and offers.

With this speed comes high open rates, which average around 98%—much higher than other means of digital communication.

SMS is also simple and cost-effective. This makes it a highly responsive communication tool, one that lets restaurants quickly keep customers up-to-date on promotional details, special events, changes to menu items, and other mission-critical info while boosting customer loyalty.

All of these factors make SMS a marketing tool that delivers a great deal of raw potential for owners, especially those who take full advantage of its versatility for connecting with customers through different types of messages.

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10 effective ways to use restaurant text message marketing

Far from “just sending some texts,” text message marketing lends itself wonderfully to the specifics of the restaurant business. Consider the following 10 ways to use SMS marketing for restaurants as an excuse to get your own marketing mind simmering:

1. Promotional messages

For restaurant owners and managers, the speed and value of SMS promotional messages are a powerful way to attract customers with special offers, discounts, and limited-time deals.

Example: 

“Kung Pao Chicken and Honey Walnut Shrimp join our famous Happy Hour menu. Available Mon-Fri 4-7 PM, enjoy special prices on drinks and appetizers!”

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2. Loyalty program messages

SMS offers the ability to personalize the process of making your most loyal customers feel extra appreciated. Personalized messages based on their preferences and past orders can improve engagement and strengthen long-term customer relationships.

Example:

“Hi Sarah, get $5 off your next order of Singapore Thin Noodles! Thanks for being such a loyal customer at Jade Palace!”

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3. Event-based messages

SMS messaging makes it easy to leverage local events or holidays to create themed offers or promotions for your customers throughout the year. Fun for locals, this can also attract new customers looking for a special dining experience.

Example:

“Celebrate Chinese New Year with us this Friday! Enjoy our special dumpling menu and complimentary chuen hap (Chinese New Year snack boxes) from 6-8 PM!”

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4. Reservation reminders and confirmations

For practical (but no less important) reasons, send reminders and confirmations for reservations. This can reduce no-shows and help ensure your tables are always filled.

Example:

“Hi Cai, tonight's reservation for 7 PM at Golden Lotus is confirmed. Don't forget: Local sommeliers will be on hand, pairing wines with your choice of entree!"

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5. Personalized offers

Done tactfully, personalized offers based on customer data—such as birthdays or anniversaries—make for another effective way to remind customers that they are special and appreciated, increasing their loyalty to your restaurant.

Example:

“Happy Birthday, Cathy! Celebrate with takeout from our restaurant and enjoy a free appetizer with your meal. See you soon!”

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6. Feedback and surveys

Gathering customer feedback through short and sweet SMS messages can also help you improve your services and show customers that you value their opinions. Because (honestly) customers always appreciate being asked for their opinions.

Example:

“Thanks for trying the buffet at Red Lantern! We'd love your feedback on your experience. Please reply with your thoughts and suggestions.”

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7. Operational updates

The swiftness of SMS marketing makes it the perfect way for restaurant owners to keep customers aware of critical information: changes to operating hours, reservation policies, takeout and delivery options, and more.

Example:

“Hi everyone, just a heads-up! Starting next week, we will be open for dine-in from 11 AM to 9 PM daily. We look forward to serving you during our new hours!”

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8. Re-engagement messages

Even some of the best customers drift away now and then. Embrace one of the most effective ways to re-engage, texting special offers to encourage them to pop back in for a bite.

Example:

“Hi Brenda, we’ve missed you at Golden Dragon. Come back this week and enjoy 15% off your meal. Just show this text to your server!”

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9. Mobile coupons

A tried-and-true winner in the restaurant world, coupons sent via SMS can be a much more efficient way to offer discounts and drive sales. This is especially true for fast food and quick service restaurants due to their convenience and frequent customer visits. 

Example:

“Enjoy a BOGO deal on award-winning Gao Zi dumplings, this weekend only. Buy one order, pan-fried or steamed, and get another FREE when you show this text. Don’t miss out!”

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10. Automated messages

Finally, automating your SMS campaigns helps ensure timely communication and reduces the workload on your staff. Typically, these messages include automated reservation confirmations, order updates, and reminders.

Example:

“Hi James, just confirming we've received your order at Sichuan Garden. Your food will be ready for pickup at 8 PM. See you soon!”

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These examples are a great starting point, but it can be hard to get SMS marketing campaigns up and running, especially if you've never done one before. 

That’s why some owners opt to outsource their SMS marketing altogether—trusting experts like those at Tarro who are pros at knowing which types of messages work best (saving valuable time and resources in the process).

On the other hand, the following best practices can provide a jumpstart to owners determined to give SMS marketing a try on their own first. 

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Basic best practices for SMS marketing messages

However you choose to get started, these best practices provide well-established guidelines to follow on your SMS marketing journey:

ABC (Always Be Compliant)

Obeying regulations, such as the Telephone Consumer Protection Act (TCPA) in the United States, is vital—especially for independent restaurant owners.

In addition to avoiding legal issues, compliant SMS marketing tactics such as easy opt-out options and respectful messaging practices build trust with your customers.

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Build a consent-based subscriber list

On the flip side, collecting opt-in consent helps you build a growing list of customers who’ve confirmed they want to hear from you, leading to better engagement and brand loyalty.

Owners can actively work to improve opt-in rates by clearly communicating the benefits of being on the “list.” For example, customers who opt in to SMS messaging typically get immediate access to important updates and exclusive deals.

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Segment your audience

In modern marketing, one size does not fit all. Divide your audience where possible, grouping customers based on helpful factors like dining preferences or spending behaviors.

By doing so, you can tailor the messages you send—improving response rates and, ultimately, growing profits.

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Personalize whenever possible

Grouping your customers also makes it easier to personalize messages, improving your chances of capturing attention and encouraging interaction.

And a little personalization goes a long way, as calling people by name, referencing past orders, or even wishing them a happy birthday makes customers feel valued and understood.

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Keep messages compelling

That said, make sure all messages are concise and clear so customers understand your key points quickly and easily.

Include a strong call-to-action when possible so customers take immediate steps (like visiting your restaurant for the first time or redeeming a valuable offer).

Also, check one of the many available online resources to make sure you’re following SMS best practices, such as keeping each message under 160 characters. 

Pro tip: SMS charges are based on the size of each text (as opposed to charging per “send.”) By adding emojis, you can reduce the number of characters used in each message. That means smaller texts and lower costs. 🙏

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Mind your timing

No surprise—there are better and not-so-better times to send messages to your audience. Sending during the better times will increase the chances your messages will be seen, read, and acted on.

While it is important to text frequently enough to maintain engagement, texting too often can result in subscription fatigue. It’s important to remember that, by opting in, customers haven’t given you permission to blast automated updates or send notifications whenever it may benefit your business. 

They’ve given you their trust with their phone number—and it’s important to take care of that trust. For the most successful restaurant SMS campaigns, we recommend sending up to three high-value messages per month. In our experience, that's just enough to keep your restaurant on people’s radars without becoming a pest.

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Think beyond the “Open” sign

It’s understandable that owners don’t get a lot of time to think about anything other than their restaurants. But customers do. This is why it’s wise to also think about timing as it relates to special events and occasions that will take place each month.

To start, consider which holidays, sporting, or pop culture-related events might be top of mind for your customers, and then test out related messaging and offers.

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Offer exclusive promotions

Exclusive deals make customers feel special and appreciated, encouraging them to stay subscribed and engaged. And limiting the time these offers are available creates a sense of urgency, prompting quicker responses and more restaurant visits.

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Track and analyze performance

Don’t make the common marketing mistake of leaving performance as an afterthought! Close monitoring of metrics like open, click-through, and offer redemption rates allows you to understand what’s working and what isn’t.

Over time, ongoing analysis of SMS performance data enables you to refine and improve your SMS marketing efforts (and your return on investment).

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Integrate with other marketing channels (as able)

Finally, work to keep your SMS marketing efforts in line with other aspects of your marketing. Doing so helps you provide customers a consistent brand experience.

For example, if you’re running a promotion on your restaurant’s Instagram account, you can encourage followers to sign up for SMS updates to receive exclusive discounts on new menu items. You could then mention this offer in your Instagram posts and stories, in addition to including a direct link to your SMS sign-up page in your bio. This approach combines the appeal of social media engagement and the (almost) universal use of cell phones to reach a broader audience directly.

Alternatively, you could use a marketing platform to automate your SMS marketing campaigns—making it easy to send mass texts about special offers, online ordering, and more. Utilizing templates for these messages can help maintain brand awareness and increase customer satisfaction rates, as customers receive consistent and appealing content.

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Read on for the 411 to getting started

SMS marketing offers a wealth of opportunities for restaurant owners to engage with their customers in meaningful ways. By following best practices such as building a consent-based subscriber list, segmenting your audience, personalizing messages, and analyzing performance, you can maximize the benefits of this powerful marketing channel. 

Remember, though, it takes a solid investment of time and attention to keep effective campaigns running 24 hours a day, seven days a week, all year round. You may be feeling more than ready to take your restaurant’s marketing to the next level but not ready to tackle it alone. 

Don’t stress! Tarro’s SMS marketing solutions can help you increase revenue and build stronger customer relationships. What’s more, new Tarro customers enjoy these game-changing marketing solutions at no cost for an entire year (an $8,500 value)!

Check out our digital marketing solutions or contact us at Tarro today.

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